89% of Japanese feel prices increasing, highest since 2008

Tokyo, July 7 (IANS) About 90 per cent of Japanese felt prices have been rising compared to a year earlier, the highest in 14 years, a survey by the Bank of Japan (BOJ) has revealed.

A sharp drop in the yen in the first half of this year has sent energy and food prices soaring across the country, Xinhua news agency reported.

In the survey conducted quarterly, a combined 89.0 per cent of respondents said prices increased "significantly" or "slightly" compared to a year earlier, up 7.8 percentage points compared to the previous poll in March, marking the highest level since September 2008.

Among all the surveyed, 82.9 per cent said rising prices are "unfavorable".

As for expectations for a year from now, 87.1 per cent said they expected prices to rise significantly or slightly, also hitting the highest level since June 2008.

The BOJ has been struggling to attain its 2-percent inflation target in a country long stuck in a deflationary mindset. However, inflation pushed by rising costs is seen by the central bank as transitory and households are now feeling the pain without strong wage growth.

About 43.2 per cent said they were worse off from a year earlier, up from 41.7 per cent in the March survey. Among those who said household conditions have been worsening, 78.9 per cent said rising prices were to blame.